The 50% tax that pg dislikes for startup founders is basically what I experienced during our startup’s liquidity event. I imagine that a fairly large number liquidity events are the same.

The acquirer paid us out in cash, which meant we were taxed at the highest marginal federal income tax rate of 37%. California taxed 10%, making the total 47%.

I only kept a little more than half of the upside, but it was still life changing.

I had to pay the taxes immediately. In pg’s example, the wealth tax would require payment over 6 decades, which is easier.

The wealth tax seems fine to me.